ZenLedger, a blockchain analytics startup that offers crypto tax software, has become an official tax partner of social trading and investment marketplace eToro, according to a press release.
As the IRS wisens up to cryptocurrencies, traders will likely need support. This year, a question regarding virtual currency will appear at the top of the 1040 form for 2020 tax filings in the US. Form 1040 is used for personal income tax returns. The partnership seeks to provide an easy, integrated solution to this key pain point for crypto traders.
Tax Plan Promotion
To spread awareness of the partnership, ZenLedger is offering a promotion. It encourages crypto traders to create an eToro account through ZenLedger. Traders then receive $100 to trade crypto, in addition to a free $149 premium crypto tax plan.
After receiving their promotion code, eToro users will have access to the ZenLedger platform. There they can import and view their crypto trading history, calculate gains and losses, and generate tax forms using their preferred accounting method.
What is ZenLedger?
According to the release, Seattle-based ZenLedger aggregates user transaction information across multiple exchanges, wallets, and tokens in a single dashboard, which facilitates recognizing tax liability. Since its founding in 2018, the company has grown its customers’ revenue 500%, year over year, the release said.
“We are delighted to be a crypto tax partner to eToro and for the opportunity to help their 19M+ registered users as well as their current and prospective customers easily manage their crypto accounting and taxes,” says Pat Larsen, CEO of ZenLedger.
How about eToro?
eToro is a multi-asset investment platform based in Tel-Aviv, Israel. Its founding vision was to open global markets to everyone, the release said. Last year, US regulator FINRA approved eToro for trading stocks in the US. Currently, it only offers crypto assets to its US users.
Since it started offering crypto assets, eToro has seen a rise in demand. Earlier this year, eToro gave users advanced notice of possible limitations to crypto buy orders over the upcoming weekend. This notice came just after eToro announced it would temporarily increase the minimum deposit amount for new users from $200 up to $1,000 to curb growing demand for cryptocurrency trading on its platform.